Question 1

Can I use USDA loans anywhere in Half Moon Bay?

Accepted Answer

No, USDA loans only work in areas designated as rural by the USDA. Parts of Half Moon Bay may qualify, but you must verify specific property addresses against USDA eligibility maps before proceeding.

Question 2

Which program has lower mortgage insurance costs?

Accepted Answer

USDA guarantee fees typically cost less than FHA mortgage insurance premiums. However, total costs depend on your loan amount, credit profile, and down payment, so compare personalized quotes for accurate comparison.

Question 3

Do both programs require homebuyer education?

Accepted Answer

USDA often requires homebuyer education courses for first-time buyers. FHA doesn't mandate education but some lenders recommend it, especially for buyers with minimal credit history or lower scores.

Question 4

What income limits apply to USDA loans in San Mateo County?

Accepted Answer

USDA sets income limits at approximately 115% of area median income, which varies by household size. Contact a mortgage professional for current limits specific to San Mateo County and your household composition.

Question 5

Can I refinance from FHA to USDA or vice versa?

Accepted Answer

You can refinance between programs if you meet all eligibility requirements for the new loan type. Geographic and income restrictions still apply, so USDA refinancing only works for properties in qualified areas.

FHA vs USDA Loans in Half Moon Bay: Which Government-Backed Option Fits Your Coastal Home Purchase?